EANS-News: Derby Cycle AG: Sales company founded in Australia

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Mergers - Acquisitions - Takeovers

Subtitle: - Direct sales as the starting base for further growth in
the attractive Australian market - Asset deal: Newly-founded company
Derby Cycle Australia Pty Limited acquires assets from Green Apple
Sports Limited

Cloppenburg (euro adhoc) - Cloppenburg, June 27, 2011 - Derby Cycle
AG (ISIN DE000A1H6HN1, WKN A1H6HN), Germany's largest bicycle
manufacturer in terms of sales, founded Derby Cycle Australia Pty
Limited on April 21, 2011, and, with the completion of the asset deal
with Green Apple Sports Limited, is launching direct sales in
Australia as of this date.

This sales company is a full subsidiary of Derby Cycle AG. The
Australian market has been served via a distributor to date, Green
Apple Sports Limited. The newly founded company Derby Cycle Australia
Pty Limited will sell directly to customers on a local basis, by
contrast. To this end, the company has acquired inventories and
customer receivables from Green Apple Sports Limited, thereby
creating an excellent starting basis for further growth in Australia.
A confidentiality agreement relates to the purchase price. Graeme
Moffett, who has been the owner and Managing Director of Green Apple
Sports to date, will manage Derby Cycle's business in Australia as
Managing Director.

Mathias Seidler, CEO of Derby Cycle AG, commented on the company's
entry into the Australian market as follows: "Around 1.2 million
bicycles are sold in Australia per year, the value of the Australian
bicycle market is estimated to be approx. one billion Australian
Dollars per year at retail level. The Australian market is
particularly distinguished by strong demand in the sports segment. As
a consequence, we are currently selling high-quality racing bikes and
mountain bikes from our FOCUS brand in Australia."

Uwe Bögershausen, CFO of Derby Cycle AG, went on to add: "With our
entry into direct sales in Australia, the internationalisation
strategy that we presented as part of our IPO is gathering further
momentum. We will continue to drive further ahead with this strategy
in the future."

Company profile: Derby Cycle is a Germany's largest bicycle
manufacturer in terms of revenues, and one of the leading
manufacturers in Europe. In particular, global demand growth for
high-quality electric and sports bicycles, as well as the company's
advancing internationalisation in all European volume markets, are
reflected in the company's dynamic growth. Derby Cycle's product
range comprises electric bicycles, sports bicycles for leisure and
competition purposes, as well as comfort bikes for everyday and
travel use. These bicycles are sold through the established Kalkhoff,
Focus, Raleigh, Univega and Rixe brands. All models are developed and
assembled at the company's base in Cloppenburg, Germany. These
high-quality products are distributed through specialist retailers
who provide their customers with professional advice and extensive
service.

With an around 550 employees, Derby Cycle achieved revenue of EUR 173
million in the 2009/2010 and financial year, 72.6 percent of which
was generated in Germany, and 27.4 percent abroad. Earnings before
interest and tax (EBIT) amounted to approximately EUR 12 million.
Derby Cycle sold a total of around 430,000 bicycles, of wet
leadership in 2010 with a 20 percent market share. The company
forecasts revenues of EUR 220 million to 240 million, and an EBIT
margin of 8 to 9 percent (2009/10: 7.0 percent) for the 2010/11
financial year that ends on September 30, 2011.

Further information is available at: www.derby-cycle.com

Further inquiry note:
cometis AG
Unter den Eichen 7
65195 Wiesbaden
www.cometis.de

Henryk Deter / Dominic Großmann
Telefon: +49 (0)611-20 58 55-15
E-Mail: grossmann@cometis.de

end of announcement euro adhoc
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company: Derby Cycle AG
Siemensstr. 1-3
D-49661 Cloppenburg
phone: +49-4471-966-238
FAX: +49-4471-966-44820
mail: u.boegershausen@derby-cycle.de
WWW: http://www.derby-cycle.de
sector: Consumer Goods
ISIN: DE000A1H6HN1
indexes:
stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
Hamburg, Stuttgart, Düsseldorf, München
language: English